Hikurangi Forest Farms sale agreed

MALAYSIA-BASED SAMLING GROUP HAS AGREED TO SELL ITS Hikurangi Forest Farms (HFF) assets on the East Coast to Australasian forestry investment company, New Forests.

The sale is expected to be completed by mid-2019, subject to consent from the Overseas Investment Office, with New Forests intending to launch a rebranded business at that time.

HFF is one of the largest forestry estates in the Gisborne region and includes around 25,000 hectares of Radiata Pine plantation on 35,000 hectares of freehold, forest rights, and leasehold land. Significant investment has been carried out since the assets were acquired in 1997, building a high yielding and sustainable forest estate, along with a new log processing plant, which is a significant contributor to the regional economy.

New Forests is currently working through an ownership transition plan incorporating continuity of operations with its own management plans and will be widely consulting with locals. “New Forests looks forward to engaging with stakeholders during the ownership transition to chart the future for this business and ensure the long-term sustainability of this regionally significant forestry asset,” says David Brand, CEO of Sydney-based New Forests.

“The HFF acquisition secures a cornerstone asset for New Forests’ Australia New Zealand Forest Fund 3, complementing the fund’s existing New Zealand forestry portfolio in the North and South Islands”.

Mark Rogers, Managing Director for New Forests’ Australia-New Zealand business adds: “We are proud of our track record and commitment to sustainable forest management, and this estate has significant potential to be a preferred provider of sustainable wood products.

“New Forests and our clients represent long-term, stable, institutional ownership that we believe will be a key enabler for the future growth of New Zealand’s forest industry.”